This paper examines the effects of brand credibility, a central concept in information economics–based approaches to brand effects and brand equity, on consumer choice and choice set formation. We investigate the mechanisms through which credibility effects materialize, namely, through...

PurposeCompanies often extend brands to higher or lower quality tiers to access different market segments. However, the impact of such extensions on the brand and its subsequent offerings is not yet conclusive. While some studies found an “averaging” pattern (all models contribute equally to...

Consumer reactions to a surprising event are generally stronger than those to an identical but unexpected event. But the experience of surprise differs across cultures. In this article, we examine differences between East Asian and Western emotional reactions to unexpected incentives. When given...